CoreLogic has purchased the remaining 49.9% ownership in RELS LLC, becoming the real estate asset valuation and appraisal services provider's sole owner.
To become full owner, CoreLogic bought out Wells Fargo, at a purchase price of $65 million. The deal was funded with cash on hand.
Following the acquisition, RELS's operating results will be incorporated fully into CoreLogic's financial reporting beginning with the first quarter of 2016. Previously, the results were included in line with CoreLogic's 50.1% ownership. The company said that the deal is expected to be accretive to 2016 earnings, excluding one-time integration investments and reductions from transitional accounting items.
CoreLogic and Wells Fargo had acted as co-owners of RELS for nearly two decades, CoreLogic president and chief executive Anand Nallathambi said in a Jan. 5 news release. Fully owning RELS "represents a logical next step in expanding the capabilities and scale of our property valuations offerings," he said.
Wells Fargo plans to continue to work with CoreLogic as a service provider and a part of the bank's valuation vendor management strategy, Wells Fargo Home Lending executive vice president Franklin Codel said in the release.
